A Better Singapore:
Quality Growth, An Inclusive Society
Budget In Brief
A Better Singapore
We are transforming our economy so that we can have
Quality Growth - growth that will provide
all Singa...
Budget In Brief3
The Quality Growth Programme aims to help businesses upgrade, create better jobs,
and raise wages. We wil...
Budget In Brief4
Govt Co-
Funds 40% $80 $160 $240
Gross
Monthly
Wage
Increase
2015
$ 200
$ 200
2013
$ 200
$ 200
2014
$ 200...
5 Budget In Brief
 Make it easier and faster for businesses to make
PIC claims
 Introduce a Land Productivity Grant for
...
6
To ensure all Singaporeans share in the fruits of progress, we will:
 Promote social mobility
 Sustain a fair and prog...
7 Budget In Brief
Increase WIS payouts
 Maximum WIS payouts will rise by 25%-50%,
or up to a maximum of $700 for workers ...
8
For Non-Owner-Occupied Residential Properties
 An economy car with an OMV of up to $20,000
will see no change in ARF ra...
Senior’s Mobility and Enabling Fund
 Top up to $50 million
 Help seniors purchase a wide range of assistive devices like...
Extra GST Voucher
10 Budget In Brief
Personal Income Tax Rebate
 For Year of Assessment 2013
 30% rebate, capped at $1,5...
Upcoming SlideShare
Loading in …5
×

Budget in brief

126 views
75 views

Published on

Published in: Business, Career
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
126
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Budget in brief

  1. 1. A Better Singapore: Quality Growth, An Inclusive Society Budget In Brief
  2. 2. A Better Singapore We are transforming our economy so that we can have Quality Growth - growth that will provide all Singaporeans a better quality of life. And we are taking further steps towards a more Inclusive Society - starting with our children, helping lower- income workers, and providing better lives for our retirees. Budget In Brief2 “We all hope Singapore will always remain the best home for ourselves, our families and our children.” Prime Minister Lee Hsien Loong Chinese New Year Message 2013
  3. 3. Budget In Brief3 The Quality Growth Programme aims to help businesses upgrade, create better jobs, and raise wages. We will:  Tighten Foreign Worker Policies  Provide a 3-year Transition Support Package  Strengthen Productivity Incentives  Develop Capabilities for New Growth Industries To continue moderating the growth of the foreign workforce, we have to make further policy adjustments in different sectors to reflect the circumstances of each sector:  Raise foreign worker levies for all sectors  Further selective Dependency Ratio Ceiling cuts  Tighten eligibility requirements for S Pass and Employment Pass Tighten Foreign Worker Policies Restructuring for Wage Credit Scheme CIT Rebate PIC Bonus The 3-Year Transition Support Package provides $5.3 billion worth of support to businesses. This will help them restructure and share productivity gains with their employees in the form of higher wages. 3-Year Transition Support Package
  4. 4. Budget In Brief4 Govt Co- Funds 40% $80 $160 $240 Gross Monthly Wage Increase 2015 $ 200 $ 200 2013 $ 200 $ 200 2014 $ 200 $ 200 Under the Wage Credit Scheme (WCS), Government will co-fund 40% of wage increases for Singaporean employees over the next 3 years. This will help businesses raise the wages of their employees. It will apply to wage increases for Singaporean employees earning up to a gross monthly wage of $4,000. The WCS will cost $3.6 billion over 3 years. The Productivity and Innovation Credit (PIC) Bonus encourages more companies to take advantage of the PIC scheme to invest in productivity. Businesses that spend a minimum of $5,000 in PIC activities in a year will receive a dollar-for-dollar matching cash bonus. The bonus will be up to $15,000 over 3 Years of Assessment (YA2013 to YA2015). It will be paid over and above the existing PIC benefits, and is expected to cost $450 million over 3 years. Business makes $10,000 PIC Investment PIC Bonus $10,000 Existing PIC Benefits $40,000 tax deduction OR $6,000 Cash Payout NEW Wage Credit Scheme A Corporate Income Tax (CIT) Rebate of 30% of tax payable capped at $30,000 per Year of Assessment will be given to help companies cope with cost pressures. The rebate will be for 3 years (YA2013 to YA2015). PIC Bonus Illustration Illustration Corporate Tax Rebate
  5. 5. 5 Budget In Brief  Make it easier and faster for businesses to make PIC claims  Introduce a Land Productivity Grant for companies that intensify land use in Singapore  Link SMEs with research and technology partners  Broaden and enhance the Partnerships for Capability Transformation (PACT) scheme  Develop solutions to industry-specific productivity challenges through the Collaborative Industry Projects  Promote prefabrication in construction via the Integrated Construction and Precast Hubs Strengthen Productivity Incentives We will develop capabilities that enable us to seize opportunities in Asia’s rapidly growing economies. We will support:  A Future of Manufacturing plan ($500 million over the next 5 years)  The emerging satellite industry ($90 million for the Satellite Industry Development fund) Capabilities for New Growth Industries We will make it easier for companies to tap on schemes, help them upgrade and support industry -wide collaborations through the following:  A 1-year 30% road tax rebate for goods vehicles, buses and taxis will be granted. The rebate will take effect on 1 July 2013 and save businesses $46 million.  Currently, when commercial vehicles reach the end of their 10-year COE, the owners can only renew for 5 years with no further extension, or pay more for a 10-year renewal. We will allow owners who choose to renew their COEs for 5 years in the first instance to extend their COEs further for another 5 years. This will ease their cashflow and provide more flexibility. Cost Savings for Commercial Vehicles
  6. 6. 6 To ensure all Singaporeans share in the fruits of progress, we will:  Promote social mobility  Sustain a fair and progressive system of taxes and benefits  Strengthen social safety nets  Provide direct assistance for cost of living Inclusive Society Budget In Brief Promote Social Mobility We will take further initiatives to strengthen opportunities for lower- and middle-income pupils in our education system. We will more than double our spending on the Pre-school sector over the next 5 years to more than $3 billion. This will allow Government to: Building A More  Extend learning support programme beyond the early primary school years  Significantly expand the number of school- based student care centres  Develop rich online materials to provide additional support for students  Expand Opportunity Fund by $72 million - 40% more for schools and extend it to Polytechnics  Top up Edusave Endowment Fund by $300 million  Expand capacity so that more pre-schools centres are closer to homes and workplaces  Bring more operators onto the Anchor Operator scheme, providing 16,000 more places by 2017  Build up teacher quality with salary grants, scholarships and training grants  MOE to set up a few kindergartens to develop best practices  Establish an Early Childhood Development Agency to drive improvements across the entire sector At the school level, we will also provide more support for disadvantaged students. This will help them catch up and better build a foundation to do well later in life. We will:
  7. 7. 7 Budget In Brief Increase WIS payouts  Maximum WIS payouts will rise by 25%-50%, or up to a maximum of $700 for workers aged 45 and above  Proportion of cash to CPF will increase to provide more help to workers with immediate expenses  Higher payments to CPF Medisave and Special Accounts to help boost healthcare and retirement savings of our older low-wage workers A 60-year old worker earning $1,000 a month will:  Receive a total of $3,500, or 3.5 months of additional income, in WIS per year  Of this, $1,400 will be paid in cash, which is more than $100 a month Expand Workfare Income Supplement (WIS) coverage  Monthly income ceiling will rise to $1,900 a month, which will benefit about 480,000 Singaporeans, or 30% of our citizen workforce To help low-wage workers save more for their retirement and medical needs, we will also restore employer and employee CPF contribution rates for workers who are earning less than $1,500 a month. Everyone contributes something to Singapore, but the bulk of taxes are paid by the high-income group and the bulk of benefits are received by the lower-income group. In this Budget, we will add to the progressivity of the system, including enhancing Workfare significantly to help older workers. We are also reinforcing our social safety nets. A Fair & Progressive System of Taxes & Benefits Strengthen Workfare
  8. 8. 8 For Non-Owner-Occupied Residential Properties  An economy car with an OMV of up to $20,000 will see no change in ARF rate  A car with an OMV of up to $50,000 will pay up to $12,000 or 24% more ARF  A luxury car with an OMV of $75,000, for example, will pay $32,000 or 43% more ARF Budget In Brief For Passenger Cars There will be:  No change in property tax rate for 112,000 or 67% of properties  Higher property tax rate for the top 33%. The increase in property tax will only be significant for high-end investment properties. The new tax structure for residential properties will be phased in over 2 years from 1 January 2014. For Owner-Occupied Residential Properties We will enhance progressivity of the tax structure through:  Lower property tax rates for 950,000 or 99% of homes  Higher property tax rates for the top 1% of homes. The increase in property tax will be small except for those at the very top-end. The Additional Registration Fee (ARF) is currently 100% of a car’s Open Market Value (OMV). This will be replaced by a tiered structure, where more expensive cars pay higher rates. More Progressive Taxes
  9. 9. Senior’s Mobility and Enabling Fund  Top up to $50 million  Help seniors purchase a wide range of assistive devices like hearing aids and motorised wheelchairs More Help Under the Public Assistance (PA) Scheme  A couple will now receive $90 more per month, or $790 in total  Supplements the free services that they already receive, such as medical treatment in polyclinics and restructured hospitals, and other social services Review of Healthcare Financing We will keep healthcare affordable, especially for older Singaporeans. We will review how the out-of-pocket share of medical costs can be reduced, even for the middle- income. We also want to broaden insurance coverage and increase the role of Medisave. Improving Social Service Delivery  Set up 20 new Social Service Offices in HDB towns to coordinate support to needy families  Integrate eldercare services under one agency to better serve our seniors  Dedicated agency to strengthen focus on persons with disabilities 9 Pensioners to Get More  Raise Singapore Allowance to $280 per month  Increase monthly pension ceiling to $1,210  These changes will benefit 10,000 Government pensioners Budget In Brief Top up to Medifund and Eldercare fund  $1 billion top-up to Medifund to provide extra assistance with healthcare bills, including to middle-income families  $250 million top-up to Eldercare Fund to strengthen support for patients in nursing homes and other long-term care services Stronger Social Safety Nets
  10. 10. Extra GST Voucher 10 Budget In Brief Personal Income Tax Rebate  For Year of Assessment 2013  30% rebate, capped at $1,500 for resident taxpayers below 60 years old  50%, capped at $1,500 for those aged 60 and above Lower Concessionary Foreign Domestic Worker Levy  For families with young children, elderly dependents and persons with disabilities  Levy reduced from $170 per month to $120 per month  A family will save $600 a year  From 1 March 2013 Direct Assistance for Cost of Living The Government will provide $1.7 billion to help households cope with cost of living. Rebates on Service & Conservancy Charges (S&CC) $200 CPF Medisave Top-Up For all Singaporeans aged 45 and above Many Households will Benefit Retiree Couple living in 3-room HDB Middle-Income Family living in 4-room HDB $3,000 in benefits, of which $1,400 in Medisave $1,500 in benefits This includes the one-off GST Voucher Special Payment, S&CC rebates, CPF Medisave Account Top-Up, Personal Income Tax Rebate (for the middle-income family), tax savings, and the permanent GST Voucher. Total payout of Cash, Medisave and U-Save benefits will be doubled this year All HDB households will receive rebates of 1 to 3 months based on flat type

×